🏪 Brick & Mortar Costs
💻 Online Store Costs
How to Use This Tool
Start by selecting your preferred currency from the dropdown at the top of the calculator. Enter all monthly cost figures for your physical brick and mortar storefront in the left-hand card, including rent, utilities, staffing, inventory storage, insurance, and maintenance costs. Enter all monthly cost figures for your online e-commerce operation in the right-hand card, including platform fees, hosting, marketing, average monthly revenue, payment processing rates, 3PL storage costs, staffing, and return losses. Click the Calculate Costs button to see a detailed breakdown of monthly and annual costs for both models, plus a clear indicator of which option is more affordable. Use the Reset button to clear all inputs and start a new comparison.
Formula and Logic
Total Brick & Mortar Monthly Cost = Monthly Rent + Monthly Utilities + Monthly Staffing Costs + Monthly Inventory Storage + Monthly Insurance + Monthly Maintenance/Repairs.
Total Online Store Monthly Cost = (Monthly Platform Fee + Monthly Hosting + Monthly Marketing + Monthly 3PL Storage + Monthly Staffing + Monthly Returns) + (Average Monthly Revenue × Payment Processing Rate / 100).
Annual costs are calculated by multiplying monthly totals by 12. The cost difference percentage is derived by dividing the absolute monthly difference by the brick and mortar monthly total, then multiplying by 100.
Practical Notes
When entering costs, use conservative estimates for variable expenses like marketing and returns to avoid undercalculating total outlays. For payment processing rates, refer to your provider’s fee schedule: most standard providers charge 2.9% + $0.30 per transaction, but enterprise rates can be as low as 0.5% for high-volume sellers.
Market benchmarks for physical retail average $25–$50 per square foot in rent annually, while small e-commerce stores spend an average of $50–$300 per month on platform and hosting fees. Staffing costs for physical stores typically account for 20–30% of total monthly expenses, while online stores may spend 10–15% of revenue on digital marketing.
Note that this calculator covers direct operational costs only: it does not factor in customer acquisition costs, sales tax, or one-time setup fees like store build-outs or website development. For a full financial projection, pair these results with your expected gross margins.
Why This Tool Is Useful
Small business owners and entrepreneurs often overestimate online cost savings or underestimate hidden physical retail expenses when choosing a business model. This calculator eliminates guesswork by breaking down all common line-item costs for both options in one place. It helps you make data-driven decisions about whether to open a physical storefront, launch an e-commerce site, or run a hybrid model. The detailed annual breakdown also supports long-term budgeting and investor pitch preparations.
Frequently Asked Questions
What if I have one-time setup costs for either model?
One-time costs like store renovations or website development should be amortized over 12–24 months and added to your monthly input figures. For example, a $12,000 store build-out would add $500 per month to your brick and mortar rent input if amortized over 2 years.
Does this calculator account for sales revenue differences between models?
No, this tool only compares operational costs. Brick and mortar stores often have higher average order values but lower traffic, while online stores have higher traffic but lower conversion rates. Factor your expected revenue for each model separately when evaluating total profitability.
Can I use this for a hybrid business with both a physical store and online presence?
Yes: enter the portion of costs attributable to your physical storefront in the brick and mortar section, and the portion attributable to your online operation in the online section. The calculator will sum all costs to give you a total hybrid operational cost.
Additional Guidance
Revisit this calculator quarterly to update cost figures as your business scales: physical retail costs may increase with rent hikes, while online marketing costs often rise as you expand your ad spend. If your online monthly cost is more than 30% higher than your brick and mortar cost, evaluate whether your digital marketing spend is yielding sufficient return on investment. For physical stores, if maintenance and utilities exceed 15% of total monthly costs, consider energy-efficient upgrades or shared retail spaces to reduce overhead.